A new GMX revenue distribution model goes to the level of sound on the chain
GMX proposes to shift revenue distribution from ETH to GMX token purchases. On-chain voting is open to the GMX DAO community until August 4th. The new model aims to increase the value of the GMX token and secure the user's real product benefits.
GMX, a popular on-chain perpetual and spot exchange, has started voting on-chain for an important proposal aimed at improving its revenue distribution model.
In the year The proposal announced on July 29, titled “Repurchase GMX and Distribute GMX,” seeks to shift the long-term value of the GMX token from the current “buy ETH and distribute ETH” model to a “buy back GMX and distribute GMX” approach. .
The proposal passed instantly and entered the voting phase on the chain
The proposal successfully passed the first instant vote and has now moved on to the on-chain voting stage.
The idea of 'returning GMX and distributor GMX', which would change the current revenue distribution model, passed the vote immediately. Now the GMX DAO transitions to chain voting on Tally:
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Delegates, please review the proposal and vote now.
1/3 pic.twitter.com/yzcIKAL4md
— GMX 🫐 (@GMX_IO) July 31, 2024
The GMX DAO community has until August 4th to cast their vote on this critical change. If approved, the new model will not only increase the value of the GMX token, but also secure the benefits of a real product for its users.
What is Repurchase GMX and Dealer GMX all about?
Key elements of the proposal include the option to convert distributed GMX to ETH, giving users flexibility in how they receive their rewards. The revenue distribution process involves allocating the seventh payment to the daily GMX purchase within seven days.
These purchases will be based on Arbitrum and Avalanche, GMX's Chainlink oracle, ensuring fair market value transactions.
Additionally, the return contract introduces a premium to the income model, starting at 0% and gradually increasing to 5% per week. This method aims to add more value to the GMX token over time.
GMX's business model already allows liquidity providers to earn fees from distributions, funding fees and liquidity. The proposed changes are expected to strengthen these incentives by tying revenue sharing to the platform's underlying token.
Currently ranked as the 45th largest chain by revenue and payouts according to DeFillama, GMX faces competition from decentralized exchanges such as dYdX and Jupiter Perpetual Exchange.
The result of this vote makes GMX even more relevant in the DeFi space, increasing its appeal to users and investors alike.
The GMX community eagerly awaits the audio results, which will determine the future direction of the platform's revenue sharing strategy.
